PCAOB Sanctions Five Audit Firms for Reporting Failures

The ​Supervisory Board of Public Business Accounting (CPAOB) has announced disciplinary measures against ​five audit companies for breaches of reporting obligations. The signatures – Bush & Associates CPA LLC, Barton CPA PLLC, Crowe Hussain Chaudhury ​& ​Co., B S R & Co. ​LLP (KPMG India) and RSM Brazil Independent Auditors Simple Sociedade, have not fulfilled their obligations under PCAOB Rule 3211, which provides for the timely ​submission of the declaration form to ​audit participants.

Without ​admitting ​or ​denying the findings, the five companies agreed to their respective orders, which censor companies and impose $50,000 in ​civil fines on Bush and $25,000 ​on ​Barton, Crowe, KPMG India and RSM Brazil. Orders also require that each company ​take corrective action to improve its policies ​and ​procedures ​with respect to compliance with Bureau ​reports.

PCAOB ​President Erica Y. Williams stressed the importance of these ​revelations, saying: “The ​gaps in the ​realization of the required revelations undermine ​the ability of the PCAOB to protect investors, and companies should not take these obligations ​lightly.” The PCAOB approved Rule 3211 in 2015 to increase the transparency of the audit ​process by providing ​investors with information on auditors involved in audits of public companies.

This implementation measure highlights the ​commitment of the Office for the ​Coordination of Public ​Affairs to maintaining the quality and ​transparency of audits. In ​holding corporations responsible for reporting, the Commission aims to ​maintain investor confidence and ensure the integrity of financial reporting.

Audit firms are reminded of ​their obligations under HPFB rules and the key role of accurate and timely reporting in the financial ecosystem in general. The Office continues to monitor compliance and will take steps to ​implement its ​rules and protect investors.